TRANSPORT CONTROL

Wairarapa Daily Times, 10 June 1933, Page 3

TRANSPORT CONTROL

LICENSE REFUSED. A sitting of the No. 6 Transport Licensing Authority was held yesterday in Masterton to deal with the adjourned application of Wrigley’s Motor Services, •Ltd., for a passenger service license between Palmerston North and Masterton. Mr G. A. Troup presided. After hearing evidence, the Authority refused the .application. Mr C. G. Marsaclc appeared in support of the application and also for two interested parties, Messrs J. E. Jenkins and F. J. Staniforth. Mr S. V. Gooding appeared for the 8.8. Motors, Mr Marsack said the position at the present time was that Wrigley had a service license for running between Masterton and Palmerston North. He was in trouble with his creditors,' and his debts, as far as he could gather, were something in the region of £4OO, probably slightly in excess of that figure. The assets available for distribution among the creditors were nil. The company had been incorporated with a capital of £250, £240 held by Wrigley and £lO by Mrs Wrigley. An agreement had been made between Wrigley and Staniforth and Jenkins whereby Staniforth and Jenkins agreed to buy Wrigley’s share for £240, conditional on the granting to the company of a license between Palmerston North, and Wellington on the present service. The whole of the purchase money, less the cost of formation of the company and payment for hire of .a car to Wrigley would be available for distribution among the creditors, and. Staniforth and Jenkins had agreed to employ Wrigley at a weekly wage. Mr Marsack said a cheque for the amount stated was held by him. He suggested that if the license were granted, it would have three effects which would be in the interests of the parties and the community generally. Tn the first place, a fairly substantial dividend would be available for the creditors, who otherwise would have no possible chance of getting it. In the second place, Wrigley would .secure a permanent job and would not possibly be thrown on the unemployment funds; and, thirdly, 'it would be in the interests of the public that there should be a satisfactory service, as well as the 8.8. Motors’ service, between Palmerston North and Masterton. It could not be denied that Jenkins and .Staniforth were in a position to run >a astisfactory service on the time-table proposed. After referring to certain of Wrigley’s creditors, Mr Marsack said that under the proposal submitted, Wrigley would not be spiriting ■away his assets, because his assets, beyond his estate interest, were of practically no value at all. Mr Troup: “I would like to have thi9 definite. What are his assets and liabilities?” Mr Marsack stated that, according to information given him, the debts were about £427, and in all probability they might be increased by £3O or £4O. Mr Troup: “Would £450 cover it?” Mr Marsack: “I cannot state that definitely. I should think so. ” Mr Troup: “We must have something definite.” He stated that tit did not seem to be very satisfactory. The Authority had a right to know the exact position. Mr Marsack, who had explained that lie had not appeared at the previous hearings, stated that it had been intended that Wrigley’s book-keeper should attend the sitting that day, but he had been unable to get over from Palmerston North. “ Would £SOO cover it all?” asked Mr Troup. Wrigley: “Yes, sir. I am sure of it. Mr Troup then asked how much of the £240 would be available for the creditors. Mr Marsack explained that the expenses of the formation of the company would be about £35, and the cost of the hire of the car from Staniforth, with which Wrigley had been carrying on, his own car being under repair, was £23. Mr Troup: “£lB2 would be available to meet a liability of £500.” Mr Marsack: “Yes, quite apart from any interest Wrigley has in ticket money or the estate.”

In reply to Mr Troup, Wrigley said the ticket money would be about £IOO. “Are you prepared to hand over that monev to the estate?” asked Mr Troup.

Wrigley: “Yes, six - .” Mr S. V. Gooding, who opposed the amplication on behalf of 8.8. Motors, alleged that the formation of the comniPnv was nothing else but a ruse for Staniforth to get lin. At a previous sittin", Wrigley’s bookkeeper had explained that several hundreds of pounds liaj been paid off his debts out of the receipts of the service, while to-dav it was submitted by opposing counsel that the service was not worth anythin". Another aspect was that certain credi-

tors would be paid 'in full, while others would only get a dividend. His client, who was one of Wrigley’s biggest creditors, had given Wrigley a fair opportunity, and to-day, Mr Gooding contended, Wrigley could not satisfactorily show that he (Wriglevl was in a solvent position. He opposed' the application on three grounds—first, because the Authority had granted the original license in the firm belief that Wrigley was solvent, whereas actually lie was insolvent; secondly, either the service was a good revenue-producing asset, or it was not; and thirdly, that Staniforth should not get a. license lathis devious route, but should contest the issue between himself and the 8.8. Motors, with Wrigley out of the field. The Transport Licensing Act provided adequate safeguards of the public interest, and he contended that it would be more economical for his client to be allowed to amend Ms license for an increased time-table than to grant a fresh license to another applicant. His client had been on the run for seven years, and had conducted a satisfactory sendee.

George Wagg, who stated that his firm was a large creditor, said he considered the proposal submitted on behalf of Wrigley to be in the interests of the creditors. W. TI. Brown (of 8.8. Motors') stated that he was one of the biggest creditors, and he had never been informed of the ■"rooo'nl until he had hea r d of it at that sitting of the Authority. Mr Troup said they must all remembp’- that anv Licensing Authority we« not a debt-collecting agency, nor was it out for making arrangements between debtors and creditors. It had to see that tV wbo’e of the licensees were in a. position to carry on. That was t° snv. tVv must be solvent. Its enquiry wo”ld be to that end. The Authority adiourned. end laV” enuovnood that the eordication bv WrVlev Motor Serv’ees for a r '?»ssong'’r ‘•ervice license between Palmerston North and Masterton would be refused.